PEABODY, Mass., May 3, 2000 - ScanSoft, Inc. (NASDAQ: SSFT), the leading provider of digital imaging software, today announced the release of PaperPort® Deluxe 7.0, the best-selling paper management software for home and business, integrating paper management, photo editing, forms fill-in and OCR. It enables users to organize, use and retrieve scanned paper and photos, as well as electronic files like word processing documents, digital camera photos, spreadsheets, and web pages. Users will benefit from PaperPort application links to new and updated versions of popular programs, access to favorite web sites from any PC with BookmarkExpress™, and Windows 2000 compatibility.

"This new release demonstrates that ScanSoft remains absolutely dedicated to PaperPort and, most importantly, to its more than one million loyal customers," said Valorie Cook Carpenter, senior vice president of marketing for ScanSoft. "PaperPort will continue to be a key element of our product strategy for years to come."

PaperPort Deluxe: The World's Most Popular Paper Management Software

Imagine being able to scan in a recipe from your favorite cooking magazine and instantly create a personal online cookbook. Scan in photos or download them from your digital camera, quickly edit and send them off to friends - all with a few clicks of the mouse. Keep electronic copies of everything from tax receipts to your child's first drawing, and make a screen saver of it while you're at it. PaperPort Deluxe 7.0 takes the paper off your desk and puts it on your PC. Make color copies directly from your scanner and color printer to put into a customer proposal. Or scan in a blank invoice form and tab and type in the information your client needs. Even take the paper copy of a contract, scan it in and have the built-in optical character recognition in PaperPort Deluxe 7.0 create a word processing file you can edit - no need to retype.

"PaperPort simplifies your life: using just a PC and a scanner, you can eliminate time-consuming tasks such as digging through file cabinets, retyping forms and searching for documents on your hard drive," said John Hoye, director of product marketing for ScanSoft. "By including BookmarkExpress, PaperPort Deluxe 7.0 offers the added benefit of easier URL management. No more searching for favorite web sites - your bookmarks are accessible from any PC."

Whether using PaperPort for fun, or profit, or both, the new features in PaperPort Deluxe 7.0 offer added value to consumers, SOHO and corporate customers:

New PaperPort application links
New with PaperPort Deluxe 7.0 are application links for AOL 5.0, Microsoft Word 2000, Excel 2000, Outlook 2000, Intuit Quicken 2000 and others. Application links allow the user to drag and drop scanned images or captured web pages directly into their favorite program. There are also links for faxing, copying, and printing as well as a link that quickly and easily creates web content from documents and photos without requiring the user to write a single line of HTML code. Visit www.ScanSoft.com for a complete list of PaperPort application links.
BookmarkExpress
PaperPort now includes EchoBahn.com's BookmarkExpress in the PaperPort Desktop. BookmarkExpress adds a "My Bookmarks" folder view that automatically synchronizes with the Favorites in the web browser (Internet Explorer 4.0+, Netscape Navigator 4.0+ and AOL 4.0+). BookmarkExpress allows users to access their bookmarks from any computer that is connected to the Internet via the BookmarkExpress web site, making it easy to select from the same Favorites whether at work, at home, or on the road.

To make it easy to find a URL, BookmarkExpress displays thumbnail views of bookmarked web sites on the PaperPort Desktop.

BookmarkExpress also places a Web Capture command directly in the Favorites menu of the web browser. With Web Capture, users can easily add web pages directly to the PaperPort Desktop View and view them as thumbnails, which are automatically updated the next time they connect to the Internet.
Windows 2000 compatibility
Windows 2000 compatibility gives users the flexibility to migrate to the latest release of the Windows operating system. PaperPort Deluxe 7.0 also supports Windows 95, Windows 98 and NT 4.0.

About PaperPort Deluxe

PaperPort Deluxe provides all the basics of desktop organization through one integrated user interface. Without switching between applications, PaperPort Deluxe users can scan, edit, file, e-mail, create web pages and access popular applications directly from the PaperPort Desktop. Easy to learn and easy to use, PaperPort Deluxe puts all the office equipment you need into your PC:

Visually organize and find pictures, documents, URLs and saved web pages using visual thumbnails, color-coded folders and keywords.
Automatically or manually make your photos "picture perfect" with PaperPort's integrated photo editor. All the basics to crop, rotate, remove "red eye" and add special effects with a single mouse click.
Get rid of that typewriter. Scan in a blank form and PaperPort will automatically detect the form fields and let you fill them in for a perfect form every time.
Don't retype. Convert scanned documents to text by a simple drag-and-drop of the thumbnail to your word processor application link. PaperPort Deluxe automatically processes it using ScanSoft's award-winning TextBridge optical character recognition (OCR) software, launches the user's word processing application and loads the scanned text into a document ready for editing.
Take notes. Annotate photos, documents and captured web pages to add sticky notes, highlights, drawings and more.

PaperPort Deluxe features web support, enabling users to create, capture and organize URLs and web pages directly from the PaperPort Desktop.

Capture web pages and URLs and display them as thumbnails for easy reference.
Easily create web pages from scanned documents and pictures.
Synchronize your favorites across the Internet for use with any PC using BookmarkExpress.

Pricing and Availability

PaperPort Deluxe 7.0 will be available on May 22, 2000. It can be purchased on CD or for download directly from ScanSoft by calling 888-345-6203, or by visiting www.scansoft.com, as well as through the following electronic resellers: www.buy.com, www.beyond.com, www.amazon.com, www.computers4sure.com and www.outpost.com. PaperPort Deluxe 7.0 can also be purchased from ScanSoft's retail partners, including Best Buy, CompUSA, Fry's, Micro Center, Office Depot, OfficeMax, Sam's Club and Staples, as well as major software catalog vendors, including CDW, Global Computer Supplies, Insight, MicroWarehouse and PC Connection. The estimated street price of PaperPort Deluxe 7.0 is $59.99. For the name and location of the retailer nearest you, visit ScanSoft on the World Wide Web at www.scansoft.com.

Registered PaperPort customers can purchase the upgrade to PaperPort Deluxe 7.0 for $29.99. To take advantage of this attractive offer, please visit www.scansoft.com or call (888) 345-6203. Registered PaperPort Deluxe 6.0 and 6.5 customers will receive a special offer to upgrade to PaperPort Deluxe 7.0.

About ScanSoft, Inc.

Headquartered in Peabody, MA, ScanSoft, Inc. (NASDAQ: SSFT) is the leading developer of digital imaging software that enables users to leverage the power of their scanners, digital cameras and other electronic devices. ScanSoft's award-winning product line - Pagis® Pro, TextBridge® Pro, PaperPort® Deluxe™, OmniPage Pro®, OmniForm®, OmniPage Pro Scan Suite Plus™, ImageAXS™, PageKeeper®, Kai's PhotoSoap2™, Kai's SuperGoo™, Kai's PowerShow™, and PhotoFactory™ - enables users to capture, recognize, edit, manage and share documents and photos electronically by taking advantage of ScanSoft's cutting-edge technology.

ScanSoft has established numerous strategic partnerships with the industry's leading scanner and multifunction vendors to deliver the most comprehensive and cost-effective solutions to its customers. Vendors who have chosen ScanSoft's cutting-edge OCR technologies to incorporate into their own product offerings include Brother, Canon, Epson, Fujitsu, Hewlett-Packard, Lotus, Microtek, Mustek, Primax, Sharp, Symantec, Visioneer, Xerox and others. ScanSoft's leading OCR technology was recently licensed by Microsoft for use in future products. ScanSoft continues to cultivate and develop strategic partnerships to deliver the most comprehensive and cost-effective solutions for its customers.

ScanSoft software is sold and marketed worldwide through retail, dealer and OEM channels and the Internet, capturing the consumer, small office/home office (SOHO) and corporate markets. There are approximately 7 million registered users of ScanSoft products. ScanSoft can be found on the Web at www.scansoft.com.

Except for the historical information contained herein, the matters set forth in this press release, including, but not limited to, statements as to the features, perceived benefits, availability and shipment date of PaperPort Deluxe 7.0, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including engineering delays, quality assurance testing delays, the market acceptance of PaperPort Deluxe, the impact of competitive products, and other risks detailed from time to time in ScanSoft's SEC reports. ScanSoft disclaims any intent or obligation to update these forward-looking statements.

TextBridge, Pagis, PaperPort, PaperPort Deluxe, Scanner Suite, OmniPage, OmniForm, and PageKeeper, are registered trademarks or trademarks of ScanSoft, Inc. ImageAXS is a trademark of Digital Arts & Sciences Corporation. All other trademarks and trade names are hereby recognized and may be registered to their respective holders.

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